CO129-373 - Public Offices - 1910 — Page 413

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leur adhésion à l'entente générale pour les affaires d'emprunts en Chine à la participa- tion, sur le pied de parfaite égalité, des quatre groupes anglais, français, allemand, et américain, à l'emprunt de 10,000,0001. récemment négocié à Pékin par le groupe

américain seul.

La question ne paraît pas, à la connaissance du Gouvernement français, se présenter exactement dans les termes où la pose la note du Gouvernement britannique. Il y a lieu de distinguer l'entente générale et l'emprunt sino-américain,

L'objection du groupe français à la signature de l'entente générale tient aux conditions particulières réclamées par les Américains, savoir, la faculté de renoncer au placement sur leur marché de la tranche qui leur reviendrait sur les emprunts futurs, tout en conservant, en vertu de l'article 6 du projet d'entente générale, le droit de négocier seuls et d'accepter, sans en référer à leur coparticipants, des conditions sur lesquelles ceux-ci jugent prudent d'être consultés. Le groupe français demande donc la modification de l'article 6.

Quant à l'emprunt sino-américain, les financiers français, d'accord avec mon département, n'estiment pouvoir y prendre part qu'aux conditions de l'entente générale, c'est-à-dire, en signant un contrat dans des conditions d'égalité complète et en participant à tous les avantages éventuels attachés à cette signature.

Paris, le 7 novembre, 1910.

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This Document is the Property of His Britannic Majesty's Government.]

AFFAIRS OF CHINA.

CONFIDENTIAL.

[41080]

No. 1.

[November 11.]

SECTION 1.

Memorandum regarding Chinese Currency Loan.-(Communicated by Mr. Addis,

November 11, 1910.)

IN September, 1910, the Chinese Government, acting through certain high officials in Peking, requested the American Minister through the State Department to invite the American group to undertake a loan of 50,000,000 taels, such loan to be devoted by China to currency reform. In extending this invitation on behalf of the Chinese Government, the Department of State expressly informed the American group that China had stipulated that this loan must be negotiated and the agreement signed solely by the American group. While objecting to the inclusion of other parties either in the negotiations for, or as signatories to, the loan agreements, the Chinese stated that they would have no objection to the American groups issuing, if necessary, in Europe. This invitation was at once accepted by the American group. Later, at the request of the Chinese Government, negotiations which had been in progress for some time for a 20,000,000 tacl Manchurian loan were abandoned. This sum was added to the amount which China originally desired to secure for currency reform, and the American group was invited to undertake a loan of 50,000,000 gold dollars. Emphasis was again laid by China on her desire to negotiate solely with the American group, and to have that group alone signatory to the agreement. The American group agreed to take up the business ou this Imsis.

On the 27th October, 1910, Mr. D. A. Menocal, acting for the American group at Peking, signed with the Chinese representatives a preliminary agreement for a loan of 50,000,000 dollars United States currency. This agreement was ratified by Imperial Edict on the following day, and the American Minister at Peking formally advised of this ratification. This preliminary agreement provides that the Chinese Government shall issue Imperial Chinese Government Sinking Fund Gold Bonds in aggregate, principal amount not execeding 50,000,000 dollars United States currency.

The proceeds of this loan are to be utilised in the reform of Chinese and Manchurian currency, and for certain industrial enterprises in Manchuria. The agreement provides that the American group shall take the bouds at 95 flat, and that these bonds shall bear interest at the rate of 5 per cent, per annum. The proceeds of the loan to be deposited with the group, subject to withdrawal for the actual require- ments of operations contemplated under the loan.

The loan is to be secured by a first charge upon certain provincial revenues, sufficient in amount and suitable in character for the purpose. The term of the loan, the conditions governing the deposit and withdrawal of loan funds, the creation of sinking fund, &c., are to be settled in the final agreement.

November 9, 1910.

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